EFRAG's comment letter on the IASB's ED/2017/4 Property, Plant and Equipment

10 November 2017

EFRAG has published its comment letter in response to the IASB's ED/2017/4 Property, Plant and Equipment - Proceeds before Intended Use (Proposed amendments to IAS 16).

On 20 June 2017, the IASB issued the Exposure Draft ED/2017/4 Property, Plant and Equipment - Proceeds before Intended Use (Proposed amendments to IAS 16) ('the ED'). 

In its comment letter, EFRAG considers that the proposed amendments raise a number of substantive questions and is not convinced that these matters have been sufficiently explored in developing the ED. EFRAG also notes that the proposed amendments affect a wider range of transactions and circumstances than the issue submitted to the IFRS Interpretations Committee. EFRAG therefore suggests that the IASB should consider taking on a broader project that would address the underlying principles and issues, and assess the effects on current practices, more comprehensively. The IASB could also consider addressing the narrower issue submitted the IFRS Interpretations Committee in the shorter term. 

Full press release

Full comment letter

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